Rambus Rising: Narrows Q2 Rev View, Settles with ST Micro

By

Tiernan Ray

June 17, 2013 4:54 p.m. ET

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Shares of Rambus (RMBS) are up 14 cents, or 1.6%, at $8.27, in late trading, after the semiconductor intellectual property licensor this afternoon said it signed an agreement with ST Microelectronics (STM) that settled legal claims outstanding between the two, and narrowed its outlook for this quarter's revenue to the high end of a prior forecast.

Rambus now sees revenue this quarter of $56 million to $58 million, toward the high end of its prior forecast range of $53 million to $58 million, and said that a recent settlement with memory chip maker Hynix meant it will be able to reversal an accrual that had weighed on operating expenses.

Rambus said a deal signed with ST Micro "provides ST with access to Rambus' memory and interface technologies for inclusion in any ST products as well as exploration of further opportunities for collaboration," and that "The companies have also settled all outstanding claims, including pending disputes related to Rambus' patented innovations."

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